The Arguments For And Against Globalization Economics Essay

Globalization is a modern phenomenon, which is often examined from various points of view. Approximately, we might say that globalization is integration of local economies, societies and ethnicities in a globe-spanning network of communication and trade. This term is part of a historical procedure for capitalism which really is a new international order in the context of an individual world.

Globalization may also be used to send specifically to monetary globalization. This theme will be developed across the essay. However, as once was portrayed by the ex-secretary of the US Brutos Gali, "there is absolutely no only 1 globalization, there are many globalizations such us technological, sociocultural, political, natural. . .

An example of that not only the economical globalization prevails is the creation of the International Penal Judge, since the human privileges are starting feeling the consequences of the globalization and it is necessary uniform and universalize the reputation of the essential privileges of the citizenship.

Globalization also identifies a process of interaction between societies and local civilizations in a global culture to what we would call sociocultural globalization.

Different definitions

The term "globalization" is defined by different writers, official institutions and dictionaries according to their viewpoint. Therefore, there is not only one exact meaning of the term universally accepted by everybody.

On the one hand, United Nations (UN) has defined it as an event, "unavoidable inside our history". It creates one world through the exchange of goods, products, information, knowledge and culture. That is due to the step of progress in neuro-scientific communications, travel, technology and industry.

According to the entire world Bank or investment company Group (WBG), "the most utilised so this means" for globalization can be an intercontinental monetary activity, which includes increased sharply. On this activity they include Foreign Direct Investment (FDI), International Commerce and Capital Stream.

However, the International Monetary Finance (IMF) has mixed both United Nations' and the planet Bank Group's description. It also talks about globalization in conditions of FDI, Capital Flow, International Commerce and the unusual progression of communication and technology. Furthermore, IMF specifies that sometimes globalization helps it be necessary for the workforce and knowledge to obtain to move to another country.

But, these kinds of institutions are not the one ones who wish to give their own definition of globalization. An array of authors have given their view on this issue.

For example, David Money, in an interview published on earth Bank or investment company Group Web, said that the monetary globalization, or as he would somewhat use, "the monetary integration occurs when a country reduces or eliminates the commercial obstacles such as custom work, and they allow ventures and trade from the rest of the world".

However, Leslie Sklair feels that "it ought to be regarded as a new period of capitalism, the one which transcends the machine of the nation-state". His college, Anthony Giddens, will not think just as as him. In this case, he talks about globalization as a transformation in the global market, the progression in the communication and "trade between nation-states in physical goods, information and currency".

Evolution from two different items of view

Theodore Levitt was the inventor of the word "globalization". He used it for first time in his publication called "The Globalization of Markets" to describe the change of the international overall economy which have been occurring since 1960.

However, its development is not clear enough. Some people say that it started in 1980's and others are towards 1870's. But in either case, "the bases of globalization are three specific ideas", according to the Washington Consensus: "a severe fiscal system, privatization and the relaxation of the restrictions on economy".

The World Loan company Group discusses four steps in Globalization's progression. Whereas, Leandro Snchez Zepeda, in his doctoral thesis, talks about that there are five different levels. I do not have enough knowledge to decide which is appropriate, so in the next paragraph I will give information regarding the introduction of both thoughts.

According to the WGB, they are the steps

From 1870 to 1914: this period was characterized by the step forward in move and the removal of commercial obstacles. The amount of exports augmented almost 8% and 10% of the full total population moved to another country.

From 1914 to 1950: the problem was as before 1870, marked by protectionism.

From 1950 to 1980: during those years, the process evolved for an economical integration between abundant countries. Moreover, Europe, North America and Japan opened their marketplaces.

From 1980 until 2009: in this time around, manufacturing increased to 80% worldwide. Some countries, such as Brazil, India and Vietnam, improved their international commerce and the globalization made growing countries improve.

On the other palm, Leandro Snchez Zepeda has put forward a different judgment in his doctoral thesis

From 1870 to 1913: this era was marked by a peak in commerce due to a rise in capital and labour force.

From 1913 to 1950: because of the Great Depression, the First and the next World War international commerce reduced.

From 1950 to 1973: thanks to the Bretton Woods' system, global integration was strengthened.

From 1973 to 1990: during these years the quantity of general public companies which became private increased, the financial system began to be more open to the earth, communication and transport advanced and it became international.

From 1991 until today: there are definitely more free-trade areas, such as ALADI, NAFTA and ASEAN, and the economic integration has become stronger. As opposed to previous times, the workforce steps less and capital and information are crossing edges.


Globalization itself is a continuing and strong process that issues the regulations of the countries in how they regulate the procedure of corporations and economic behaviour of individuals at the international level, who can provide occupation to workforce unemployed and also reap the benefits of remaining irregularities and weaknesses in a particular country.

It is a complicated phenomenon; therefore it should not astonish us it triggers different reactions in several individuals or communities. Some consider that threatens the framework of the "nation state", national identity and the present day concept of democracy. For some, it promises a new age of riches for everyone, for others, it's the seduction of a consumerism that will bankrupt morally and economically almost all.

In favour of globalization

Why economic globalization is a good system? Innovations in communication and travelling technology, coupled with free-market ideology, have given goods, services and capital unprecedented mobility. For example, North countries want to open up world markets to their goods and take benefit of abundant, cheap labour in the South. To do this, these countries use international financial institutions, such as, the International Monetary Finance and the World Loan provider Group, and regional trade agreements to compel poor countries to "integrate" by minimizing tariffs, privatizing express enterprises and soothing environmental and labour requirements.

Globalization is a trend that is important to the develop of the overall economy atlanta divorce attorneys country, because of the general opening of markets for goods and capital advises the end of trading blocs, local treaties and economical freedom of countries but also facilitates the ability to solve economic needs that local players have been unable to satisfy. It makes easy the commerce between different countries and reduces the difference between developed and underdeveloped countries.

Some factors in favour of globalization are

Global overall economy and market, which can lead to a better usage of resources.

Greater ability to maneuver in comparison to fluctuations in countrywide economies.

New opportunities of develop markets.

Using economies of level, it can reduce cost.

International co-operation.

Growth and mergers between companies.

Privatization of general public companies.

International financial deregulation.

Development of method of communication and move.

The free movements of capital allows a more successful allocation of global cost savings and to appearing economies the resources to build up and promote the consolidation of a sustained and balanced expansion.

Globalization starts up opportunities for developed economies to improve their efficiency and production and allows economies in producing to increase the living specifications of its human population.

Against of globalization

When globalization was identified, it tried to reduce the impact of negative things and reinforce positive tips.

Some factors against globalization are

Lack of control over marketplaces and multinational enterprises.

Increased economic cultural and territorial imbalances.

Concentration of richness and increased sociable inequality.

Non-fulfilment of bare minimum labour requirements. Full employment, a priority until recently, was postponed. The work has to behave as a commodity, subject to the regulations of source and demand and the creation needs, without regulations that safeguards smooth minimum protection under the law.

Damage to the surroundings.

Threat to biodiversity and ethnical heritage.

Dominance of financial-speculative market over real market.

Increase exploitation of child labour


The liberalization of international trade means more economic growth and welfare, including the exemplory case of China, where international capital has invested heavily and the country has emerged extremely by the effect of globalization. But if we go to Africa, we can easily see that its people are sinking ever deeper into poverty and degradation of financial, social and politics life. There, nobody invests and the thing that Africa can be used by Occident is ideal for the arms business and also to recover the debts they owe to developed countries.

It is true that globalization stimulates free trade among countries, but there's also negative implications because some countries try to save their countrywide markets.

Companies are buying goods and services from international countries. Workers, who had been sacked, are compelled to work in to the service sector, where pay and benefits are lower. It has contributed to the deterioration of the middle class, who've been relegated to lessen positions. People in the low school have to make more initiatives to climbing out of poverty due to the absence of the center course as a stepping natural stone.


Globalization is the shortest and most viable way for the developing world to accomplish political, interpersonal and intellectual modernity. Globalization is said to be the best & most effective means for the expanding world to accomplish comprehensive development, since it is the only real way to progress for this world economically. Changing the world to the better is through making use of globalization.

There are problems along the way of globalization: if other countries produce goods better than other, maybe a lot of citizens from this previous country will be sacked; if one condition collects less taxes, companies could go there to get more profit. The procedure of globalization includes adjustments in countrywide and international economies, to which countries must adapt.

Income circulation: oftentimes goods are stated in a region through the importation of them is less restricted. The removal of import barriers could cause a substitution of goods produced within the united states by others imported. This way, home manufacturers are influenced. However, the elimination of trade barriers can make a product cheaper, which is an benefits for consumers because they can purchase more with the same funds.

On the other hands, globalization stimulates the focus and the introduction of large multinational companies. The opportunity of providing its products worldwide and reduce production costs through exploitation of economies of range, cause that small businesses reducing their sales probable. This can lead to the reduced amount of global competition and that one or a few companies dominate the marketplace.

Evade national law: the probability of settling in virtually any country motivates companies to consider those where creation costs are lower. As the regulations of several countries may increase charges for businesses, they seek countries which have less legal rules. Actually, there are territories where companies don't pay fees for the profit. They prefer to settle there, due to they can pay higher returns to their shareholders.

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